"Dubai and London will be in competition to be the global hub of Islamic banking and finance, while Kuala Lumpur will also attempt to be in this contest but the Islamic finance industry can be grown more through synergising approach and alliance with industry stakeholders rather than setting any competition," he said.

Mr Mughal said the industry will clock a double-digit growth which will turn the $1.6trn volume of Islamic finance industry last year to $2trn by the end of 2014.

"The rising trend of Islamic finance in Europe, UK, Tunisia, Libya, Morocco, Senegal and Mauritania will contribute to its growth.

"It is expected that India and China may step towards Islamic finance in 2014 where more than 200 million Muslims are in search of a financial system compatible with their religious beliefs and thoughts."

Mr Mughal said there is no doubt that international financial crisis will not hit the Islamic finance industry but due to the Arab Spring, Islamic finance industry has faced recession in some Mena countries but there are chances of their revival in 2014.

He said sukuk will grow rapidly this year and countries including the UK, China and South Africa and Europe will benefit from it, which will enhance the industry's growth. However, the takaful industry is not expected to have any substantial breakthrough. "It is being hoped that 2014 will prove better period for Islamic Microfinance industry as different international institutions including Islamic Development Bank have declared it a potential tool for poverty alleviation around the globe.